Achieving the United Nations sustainable development goals – innovation diffusion and business model innovations

Abstract

Purpose

The study aims to analyse the race towards green development and United Nations sustainable development goals (SDGs) in the cases of Huawei and Shell. Both companies are the leaders in their respective industries. Huawei is an example case study representing the information and communications technology (ICT) industry whereas Shell is an example case study representing the oil and gas industry. The research analyses of the races in achieving UN SDGs were undertaken based on the innovation diffusion framework with the use of machine learning algorithms trained to extract data on sustainability activities and initiatives.

Design/methodology/approach

The research analyses the two case studies of Huawei and Shell. The research was undertaken through the steps of training machine learning algorithms, industry benchmarking and evaluating the performance of the race. The analyses regarding the activities and initiatives of Huawei and Shell in contributing towards SDGs are based on the data in the past 10 years (Years 2010–2019) using machine learning to extract data on sustainability activities and initiatives. In the case of Huawei, 313 sustainability reports were fed to the unsupervised machine learning algorithms revealing 15,101 sustainability actions and initiatives related to UN SDGs in the ICT industry. In the case of Shell, 2,015 sustainability reports were fed to the unsupervised machine learning algorithms revealing 47,365 sustainability actions and initiatives related to UN SDGs in the oil and gas industry.

Findings

The analyses of findings revealed that Huawei and Shell performed very well in progressing towards the UN SDGs. Huawei had strong performance in the ICT industry with regard to SDGs No. 3, 4, 7, 8, 11, 12 and 16 while Shell had strong performance in the oil and gas industry with regard to SDGs No. 3, 4, 6, 7, 8, 12 and 16. Both companies had placed a focus on achieving SDG 12 responsible consumption and production, SDG 7 affordable and clean energy and SDG 4 quality education. The synthesised business model innovations of Huawei and Shell had shown their environmental, social and governance strategies – Huawei’s 2030 vision for green development and Shell’s 2050 vision for net zero emissions.

Practical implications

The five pillars of people, planet, prosperity, peace and partnership according to the UN 2030 agenda for sustainable development have shown the way a company operates to promote sustainable eco-systems. The extent to which both Huawei and Shell link corporate strategies to the UN SDGs has reflected their implementation progress. Furthermore, the business model innovations of Huawei and Shell provides a useful framework which can be applied to encourage other companies/organisations in various industries to undertake ESG activities in practice.

Originality/value

The main contribution of this research is the application of machine learning algorithms and the innovation diffusion model in analysing the SDGs performance. The study applies the innovation diffusion framework to explore strategic actions and initiatives of Huawei and Shell in transitioning towards sustainability. The use of machine learning algorithms has identified their sustainability approach in achieving the UN SDGs.